Exclusive analysis for FinReg 21 by Darrell Delamaide
When the chief executive of one of the nation’s best-known insurance companies took to the opinion pages of The New York Times with what looked like an exercise in eating humble pie, he brought to the fore the fierce fight over how this country regulates the insurance industry.
The plea by Allstate CEO Tom Wilson in an op-ed last week to “Regulate Me, Please,” brought a firestorm of retaliation from state insurance commissioners and consumer advocates who accused the writer of cynicism and described his proposal for a federal insurance regulator as a “sheep in wolf’s clothing.”
Because Wilson mentioned in passing that Allstate had played “a small role” in the market for credit default swaps (CDS), his Times piece also brought a demand from New York state insurance superintendent Eric Dinallo for the insurer to detail immediately just where and when it had participated in this market.
The new fracas revives a debate that has been going on for decades – whether there should be a federal charter, and federal regulator, for insurance companies, which now are regulated solely by the states. That debate has been overshadowed recently by the crisis in banking and credit markets, but it is sure to be part of the overall debate on regulatory reform.
The industry has lobbied in favor of a federal charter, complaining that the patchwork of state regulation is inefficient and adds costs that eventually are borne by the consumer. State regulators and most consumer advocates respond that control at the local level provides better protection to consumers and a more responsive bureaucracy.
All this comes out in the current debate over Wilson’s op-ed. The Allstate executive also touched a nerve when talking about fellow insurer American International Group running amok with credit default swaps. He implied this was no surprise since state regulators “lack the expertise to properly oversee rapid innovation or systemic risks.”
Critics were quick to point out that federal regulators in every sphere also failed to keep on top of the risks posed by the derivatives. After all, the New York Federal Reserve Bank under then-president Timothy Geithner never sounded the alarm on the amount of leverage banks under its supervision were building up with CDS and other derivatives.
As to AIG, Carmen Balber of Consumer Watchdog noted in a letter to the Times, it was the Office of Thrift Supervision, a federal banking regulator, that had the oversight of unit responsible for its derivatives exposure, and this agency has already acknowledged its failure to monitor the risk“What the insurance industry really wants is to escape tough state rules, like those that prohibit excessive profit, overhead and executive salaries in California, or mandate an affordable lifeline auto insurance program for low-income drivers,” Balber wrote. “Federal insurance regulation is the sheep in wolf’s clothing — a surface promise of tough oversight to hide the coming deregulation.”
Dinallo takes issue with Wilson’s assertion that CDS is insurance because for many participants in the market the swaps were purely speculative transactions and did not cover anything they owned, a condition for being defined as insurance.
This is why CDS have not been regulated as insurance, he said. “But one thing should be clear,” Dinallo added in a statement on the issue. “While the credit default swap market is not regulated, insurance company use of credit default swaps is. In New York, no insurance company can use credit default swaps except under very specific and limited ways and only with approval.”
So Dinallo wanted to know from Allstate whether it or any other insurance company it knew of had engaged in “illegal” transactions involving CDS without authorization from state regulators.
Michael McRaith, the insurance commissioner for Illinois, where Allstate is based, challenged Wilson’s sincerity, saying that national insurance companies have long fought state regulation because it diminishes profit.
“Financial institutions pushed for deregulation to promote ‘innovation’ while fundamental consumer protections, like solvency, were dismissed as obstacles to profit,” McRaith wrote to the Times. “With this in mind, the myth-laden pleas of an otherwise prudent Tom Wilson, CEO of Allstate, in search of federal regulatory relief should be viewed cynically.”
McRaith also noted that despite the incompetence of a non-insurance subsidiary of AIG in losing billions for the company with CDS transactions, the insurance units themselves continued to operate soundly under state supervision.
The president of the National Association of Insurance Commissioners, New Hampshire commissioner Roger Sevigny, and the chief executive of the NAIC, Therese Vaughan, also chimed in. “Federal oversight proponents are exploiting consumers’ fears in a self-serving attempt to justify the deregulation of the business of insurance,” they wrote in a letter to the Times. “This is dangerous and threatens consumer confidence in the industry.”
The director of insurance for the Consumer Federation of America, Robert Hunter, himself a former insurance commissioner in Texas, also questioned Wilson’s sincerity in seeking regulation. “Allstate has been very clear that it seeks deregulation by supporting an optional-federal-charter approach that…[would] set up a regulatory arbitrage that would weaken state protections,” Hunter said in his letter to the editor.
Wilson undoubtedly knew the controversy he would generate when he penned his op-ed. And, presuming he can answer Dinallo’s query satisfactorily, he is certain to survive this particular firestorm. After all, he can always plead the First Amendment.
Darrell Delamaide is a veteran financial journalist who has worked for Dow Jones, Bloomberg, Institutional
Comments
nike shoes
asics tiger
christian louboutin
uggs for cheap
ed hardy
ugg boots cheap
mbt shoes
north face
watches
womens north face jackets uk
MBT Shoes Clearance
Links
- High Heel Shoes
- NFL Jersey
- Mbt shoes
- Christian Louboutin
- Wholesale china
- Wholesale Women Shoes
- Wholesale Christian Louboutin
- Wholesale Jimmy Choo
- Wholesale Jordans Shoes
- Wholesale Manolo Blahnik
- wholesale mbt shoes
- Wholesale Yves Saint Laurent
- Wholesale NFl Jerseys
- Wholesale Nike Shoes
- Wholesale UGG Boots
Men MBT Sandals , discount MBT Sandals mbt sandals, cheap mbt sandals , mbt sandals shoes,,chung shi sandals, MBT Sandals mbt sandals reviews,Discount MBT Shoes mbt sandals on sale with free shipping. Clothing and Accessories - Free Shipping BOTH ways. Mbt shoes is the first physiological footwear that has a positive effect on the whole body. Vikings Jersey-Minnesota Vikings Jersey If you've been looking for purple or white Chicago Bears Jersey ,we've done that for you.Carolina Panthers Jersey You can find any Vikings player's jersey you want. Welcome to jerseys-shopping nfl jerseys store. New York Giants JerseyAs the world-leading NFL Jerseys store, we supply more than 700 high-quality merchandise discount NFL Jersey of NFL. Our website is revising, green bay packers Jersey">New York Giants Jersey I hope everyone can enjoy this layout. At the same time, we will keep on working hard for everyone to provide a better shopping experience. Discount UGG BootsWholesale Clothing
CA Bikini
Wholesale Handbags
Wholesale Jewelry
china wholesale
wholesale products suppliers
wholesale MBT Shoes
wholesale china
china wholesalers
NBA jerseys MLB jerseys NHL jerseys NFL Jerseys
nfl jerseys
Vibram Five Fingers
MBT Shoes
Jordan Shoes
Nike Shoes
Christian Louboutin Shoes
UGG Boots
Jimmy Choo Shoes
Wholesale Rolex Watches
Tiffany Jewelry
GHD Hair Straighteners
Oakley Sunglasses
Wholesale Sunglasses
cheap Gucci Shoes
discount mbt shoes
cheap Nike Shoes
Timberland Boots
Discount UGG Boots
cheap Gucci Shoes
Christian Louboutin boots
Ed Hardy Clothing
Polo Clothing
lv handbag
Chanel handbag
Tiffany Jewelry
CHI Hair Straighteners
Rolex Watches
cheap mbt chapa gtx
MBT Kisumu Sandals
Mbt m walk sky
wholesale jordan shoes
wholesale Timberland Shoes
wholesale Lacoste Shoes
wholesale Bape Shoes
wholesale ED Hardy Shoes
Nike Air Force one Shoes
wholesale Adidas Shoes
wholesale Nike Air Yeezy
wholesale Air Max shoes
wholesale shox shoes
wholesale Puma Shoes
wholesale D&G Jeans
wholesale Bape Jeans
wholesale Coogi Jeans
wholesale Armani Jeans
wholesale Christian Audigier wholesale Ed Hardy Jeans wholesale True Religion Jeans wholesale GUCCI Bags wholesale d&g handbags wholesale ED Hardy handbags wholesale Tous handbags LV women handbags miu miu handbags wholesale chanel women handbags wholesale gucci ladies handbag wholesale Fendi women handbags wholesale d&g handbags wholesale YSL handabgs NFL jerseys for sale nike Air Force one wholesale nike dunk SB wholesale nfl jerseys nfl jerseys cheap nfl jersey sales Nike air max 90 nfl jerseys wholesale nfl jersey sizes ugg boots sale wholesale ugg boot sale ugg sundance boots ugg classic short ugg classic tall newest style ugg boots ugg classic mini ugg ultra short ugg cardy nike blazers shoes UGG Highkoo wholesale UGG Elsey UGG Nightfall china wholesale products Christian Louboutin Specials china wholesale shoes UGG Classic Crochet UGG boots wholesale nike blazers shoes ugg highkoo ugg elsey ugg nightfall china wholesale products christian louboutin specials china wholesale shoes ugg classic crochet ugg boots wholesale wholesale GUCCI handbags wholesale clothing wholesale shoes wholesale handbags wholesale GUCCI handbags Nike Shoes mbt Shoes Jordan Shoes Supra Shoes Vibram Five Fingers AF T Shirts Polo tshirt Ed Hardy Clothing Christian Louboutin wholesale MBT Shoes UGG Boots Yves Saint Laurent Abercrombie Fitch Clothing edhard bikini wholesale Chanel handbangs wholesale Versace handbangs small wholesale Dolce Gabbana handbangs Louboutin Shoes Discount Louboutin Shoes High Heel Shoes Christain Louboutin Slingback Womens high heel shoes christian louboutin shoes christian louboutin bridal christian louboutin pronunciation Mbt shoes mbt shoes sale Cheapest MBT Shoes Cheap Uggs Boots Buy Discount Ugg Boots Discount Ugg Boots Christian Louboutin sale MBT Shoes Cheap christian louboutin Discout High Heel Shoes high heel boots Womens high heel shoes
MBT Shoes Sale
dsfdsaf
dsafd
MBT Shoes Clearance
Swarovski Pendants
Unique Tips for Halloween Costume What's In Mode now? Swarovski Pendants Come out Gifts of Swarovski Binoculars at Every Price. What to Wear to Affair? - the Best Unique gifts Choice Summer Most Charming Swarovski Bangles 9 Signs Reminds You to Modify Your Swarovski Crystal How to Accessorise like Scarlett Johansson in Cheap Swarovski Jewellery Sale Why Mom all Choose Swarovski Crystal ? God Knows!Fergie also Adore Predominant Swarovski Jewellery. Do You Know How Swarovski Rings Prevail? A Horrible Number! Excellent Blair Waldorf for Swarovski Brooches InspirationTop ten Mistakes of the Popular Swarovski Small Leather Goods Gifts
Hilary Swank Adore Women in Nashville all Swarovski Pierced Earrings Adore to Wear Swarovski Jewelry How to Suit Right Swarovski Rings in During SpringIt is Revealed That the Designer of Swarovski Clip Earrings will Resign Next Month.Vintage-Inspired: Magnificent Jewelry10 Most Agreeable Vouchers: Swarovski Sets
What is Bad for the Luster of Swarovski Ring? Swarovski Pendant , the Best Gifting for True love.
Be More Photogenic in swarovski christmas gifts Last Week My Father Sent Swarovski Outlet for My Mother. Swarovski Crystal Gifts for 50 SomethingsWhy Shop Swarovski Clip Earrings for Receptionists swarovski optics In Australia. 3 Accounts that May Bring Destroy to Your Gallant Swarovski Wholesale The Most Glamorous Gifts Ever: Swarovski Jewelry for Editors Swarovski Keyholders In Minneapolis Swarovski Bracelet , the Common Decision of Sweetie
Windows 7 Activation Key
moncler jackets on sale
Moncler Womens Jackets are actually very stylish and renowned.Moncler Boots are made of 100% goose down filling class A material,which make this brand the luxurious brand all over the world.The shiny water repellent polyamide fabric and quilted with that makes this cheap womems moncler jackets extremely light but warm.Moncler Bags,as we know,is the well-known high-end outerwear, especially skiing coat brand which created a quilted jacket trend in the fashion world.
This Kids Moncler Jackets that come with fashion style and colorful choices will be charming.They should be dry clean to keep the mens moncler vest warm and the Moncler Women’s Long Jackets can be maintained brand-new after washing.?
For women,this Mens Moncler Jackets will be a great choice to your wardrobe this freezing winter. The stand collar and allover horizontal quilting present the classy sense. Not like other brands jacket, the Moncler Womens Vest are classy and faddish enough for you.The Moncler Mens Long Jackets are very casual but fashionable.No matter where you go,in the casual occasions or in the formal occasion,they are appropriate cloth choice.We are frofessional supply moncler jackets,cheap moncler jackets,all kinds of moncle down jackets sale now,buy moncler vest on Moncler Jackets Online,Cheap Moncler Jackets On Sale now!Save you 60% OFF!
Ugg australia boots
uggs on sale
1.Even celebrities love wearing boots for their orgfortable cheap uggs for sale features. You too wanna try out this sheepskin footwear for your family? Well, it’s a great idea. With Sheepskin cheap ugg boots being made in plenty of styles and sizes, you can choose a pair for all members of your family from UGGS On Sale. Such asUGG Bailey Button|UGG Argyle Knit|UGG Cardy|UGG Crochet|UGG Flower|UGG Leopard|UGG Mini|UGG Paisley|UGG Short|UGG Tall|UGG Elsey|UGG Langley|UGG Lo Pro|UGG Mayfaire|UGG Nightfall|UGG Sundance II|UGG Tall Stripe Cable Knit|UGG Ultimate Bind|UGG Ultra Short|UGG Ultra Tall|UGG Suede|UGG Upside|UGG Roxy|UGG Seline|UGG Corinth|UGG Liberty|UGG Highkoo|UGG Knightsbridge|UGG Adirondack|UGG Suburb Crochet|UGG Adirodack II|UGG Broome|UGG Gissella|UGG Felicity|ugg swell|ugg desoto|ugg ashur|ugg gaviota|ugg brookfield|ugg tess|ugg stella|ugg brookfield tall|ugg roseberry|ugg kensington|ugg chrystie|ugg bailey fancy|ugg sandra|ugg payton|UGG Handbags|UGG Bailey Button Fancy|Kid's UGG Boots 5281|Kid's Classic Short 5251|UGG Bailey Button Triplet |UGG Men's Classic Short |UGG Kids Classic Tall 5229|Kid's UGG Bailey Button |UGG Evera|UGG Dakota|UGG Delaine
sfsf
cheap uggs for sale
We have all cheap uggs for sale in our website http://www.salesuggs.org ! You can meet all your needs for UGG hot sale here and will certainly be satisfied with the top quality at low price. All UGGs on sale are made with the 100% genuine sheepskin from Australia and are hand-made in our own factory completely. So you need no to worry about the quality and the cheap UGGs for sale are all to be delivered in free shipping. Enjoy the large discount!
1. UGG Amberlee |UGG Kensington |UGG Elsey |UGG Langley |UGG Roxy Short |UGG Roseberry |UGG Oliviya |UGG Raya UGG Brookfield Short
cheap uggs for sale
We have all cheap uggs for sale in our website http://www.salesuggs.org ! You can meet all your needs for UGG hot sale here and will certainly be satisfied with the top quality at low price. All UGGs on sale are made with the 100% genuine sheepskin from Australia and are hand-made in our own factory completely. So you need no to worry about the quality and the cheap UGGs for sale are all to be delivered in free shipping. Enjoy the large discount!
1. UGG Amberlee |UGG Kensington |UGG Elsey |UGG Langley |UGG Roxy Short |UGG Roseberry |UGG Oliviya |UGG Raya UGG Brookfield Short
uggs on sale
cheap uggs on sale
Ghd
UGG Classic Boots
UGG Lo Pro Button are the new style.|UGG Lo Pro Button Black|UGG Lo Pro Button Cream|UGG Lo Pro Button Blue|are the following color under this style.
UGG Nightfall|Ugg Suede|UGG upside|UGG Ultimate Bind|UGG Ultra Short|UGG Ultra Tall|UGG Roxy Tall|UGG Knightsbridge Boots|UGG Adirondack Tall|UGG Suburb Crochet|-the following detail about|UGG Suburb Crochet Chocolate|UGG Suburb Crochet Chestnut| and the UGG Gaviota|——UGG Gaviota Black|UGG Gaviota Chestnut|UGG Gaviota Boots Chocolate|
The above model about these also very good.-|UGG Swell Tall|UGG Roseberry|UGG Brookfield Tall|UGG Desoto Boots|UGG Bailey Button Fancy Chocolate|UGG Adirondack Tall Brown|UGG Adirondack Tall Chocolate|UGG Brookfield Boots|also a really good good choice.They can be found in many different designs and colors. They are comfortable and stylish shoes that can be worn on any occasion
UGG Elsey Wedge|-Beautiful women will look more slender and charming when wearing these with the high wedge heel.Follow thie,The UGG Langley|UGG seline|UGG Corinth wedge|UGG Liberty|UGG Highkoo|UGG Stella Boots|UGG Caroline Boots|UGG Tess|UGG Caroline|UGG Tess|UGG Felicity|also can fit for you.
Style, practicality and price are always three of main aspects everybody will consider while on the market for fashion accessories. This time,these style ||UGG Broome|UGG Bailey Button Fancy|UGG Adirondack Boots II|UGG kid's Bailey Button Boots|UGG kid's Bailey Button Boots Sand|All of these are perfectly solved. For better enjoying those approaching cold days, add a pair of Australian sheepskin boots into your closet now.
The next unique quality of the Ug boot is the fleece lining:——|UGG Sandra Chestnut|UGG Sandra Black|UGG Bailey Button Triplet Black|UGG Bailey Button Triplet Chestnut|UGG Bailey Button Triplet Chocolate|UGG Kensington Boots Black|UGG Swell Tall Chocolate|UGG Swell Tall Black| Each season, new exciting styles are released.
Ugg boots...|UGG Felicity Espresso|UGG Bailey Button Fancy Chestnut|... did you know that before the name was trademarked Was it Aussie slang for ugly? Apparently the ugg boots have been made for over 200 years in the land down under. Designed to be worn to be comfy and warm... more function than fashion.
★★★★★If you are considering buying a pair of shoes, these sheepskin boots surely are ideal choices.It's maybe more successful;probably for your new style.the Ugg boots has been enormously successful and is probably here to stay.So with these fashion concerns answered, there is no reason why you should not join the rush and buy a pair of Ugg boots for this winter.
ugg kensington
ugg kensington
cheap uggs on sale
Backup iPhone SMS
ccccc
thomas sabo anh?nger
uggs on sale
I LOVE UGG
north face hoodie
Christian Louboutin Shoes